Green loan

About the farm

The project owner, who has been farming for ten years, manages a crop farm of more than 200 hectares in the Mažeikiai district. Each year, the farmer sows wheat and barley, and also devotes part of the farm to clover and perennial grasses. The project owner is farming together with his wife, who manages livestock farm and breeds beef cattle. The total area of the family's farm is over 300 hectares.

The agri-entrepreneur uses two tractors, a combine harvester, a trailer and other implements, which he shares with his wife's farm.

"As soon as my wife and I started farming, we invested everything in developing the farm. We have a lot of plans for expansion - we want to buy more land, build a farm on my wife's farm and renew most of our machinery. We are planning the right timing and, of course, the finances to be able to do all this. Now I feel the need to buy a new sprayer and a spreader, as the old machinery is no longer suitable for the size of the farm."

Area of declared land: 211,56 hectares, from which 30 hectares are owned by the project owner.

Main Terms

The principal will be repaid by the farmer in regular instalments over the span of 4 years in accordance with the repayment schedule.

112 hectares of land are included in the Green Loan program. It is estimated that a total of 1092 carbon certificates will be generated in 5 years (based on a conservative estimation). Consequently, investors will receive below indicated portion of sales proceeds from every carbon certificate generated from the land of the project owner involved in the program;
60% of income received during the loan period;
40% of income received for the following year after the loan period.

It is expected that the first carbon certificates will be generated and sold in the second quarter of 2026. The exact return will depend on the amount of sequestered CO2 levels and the sale price of the carbon certificates.

If the project owner (farmer) withdraws from the Carbon Credits Agreement and does not intend to follow the agreement on the carbon revenue split with investors, the project owner will be obliged to repay the entire loan as well as pay the penalty, calculated by multiplying the interest rate by the entire loan amount and period equal to the duration of the loan agreement plus 12 (twelve) months.
Investors of this loan would receive a penalty of 40000 EUR * 13% * 5 year = 26000 EUR. This penalty can be reduced by the return earned by investors from the carbon credits generated

If the project fails to be delivered successfully through no fault of the farmer, the farmer commits to paying investors a minimum interest rate of EURIBOR 6M + 1.5%. This commitment applies in situations such as the lack of market demand for selling carbon credits, among others.

Annualized return forecast

Conservative scenario (€20 per carbon certificate): 14,39% IRR*
Today's scenario (€35 per carbon certificate): 22,85% IRR*
Optimistic scenario (€100 per carbon certificate): 50,73% IRR*
Read more about the return scenarios in the document section

*The internal rate of return (IRR) is a metric used in financial analysis to estimate the profitability of potential investments. Learn more about it

Keep in mind that the return forecast is an estimation and does not guarantee you the returns mentioned above."